Government to fix prices of essential items, even packed ones

Once the central or state government fixes and notifies the retail sale price, retailers cannot sell essential commodities such as pulses, sugar, milk and edible oils at higher prices in the guise of selling such items in packets.Dipak K Dash | TNN | September 12, 2016, 13:37 IST

NEW DELHI: Once the central or state government fixes and notifies the retail sale price, retailers cannot sell essential commodities such as pulses, sugar, milk and edible oils at higher prices in the guise of selling such items in packets.

Learning from recent experiences of exceptional spurt in prices of pulses and particularly huge difference between loose dal and those sold in packets, the consumer affairs ministry has modified the legal matrology (packaged commodities) rules enabling governments to fix retail prices.

The modification says, "If the retail sale price of any essential commodity is fixed and notified by the competent authority under the Essential Commodities Act, the same shall apply."

The notification issued on September 7 also says once the government fixes and notifies the standard quantity such as 500 grams, one kg or two kg , the retailers will have to comply with the norms.

Officials said violation of packaged commodities rules can invite a fine of Rs 5,000 and detaining of the entire stock. "Fine is not that big a deterrent as detaining the entire stock. The retailer cannot sell or dispose of the entire quantity under this law," said a source.

He added that enforcement of these new norms will nullify the concept of maximum retail price (MRP) in case of essential commodities.

"The government has been forced to look for such measures as abnormal increase in prices of pulses was artificially created," the source said.

Last year, the Haryana government had fixed the MRP on pulses for retail sale. Maharashtra is also working to enact a law to fix MRP when there is spurt and to curb hoarding.

In July, the consumer affairs ministry had urged states to consider a pricing policy for pulses and such other essential food items and to make it enforceable for all stakeholders to cap the prices of essential commodities.

Section 2 of the Essential Commodities Act, which deals with powers to control production, supply and distribution of essential commodities, empowers the Centre to ask states to act. As per the law, states can take necessary steps to control the price at which essential commodities are bought or sold. This power has been delegated to states.